The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to the Ashok Lavasa committee.

The allowance committee on 7th Pay Commission is likely to hold a meeting with employee representatives later this month, Shiv Gopal Mishra, the convenor of National Joint Council of Action (NJCA) told NDTV. After further talks with employee representatives, the 7th Pay Commission allowance panel may submit its report to the government, he added. Minister of State for Finance Arjun Ram Meghwal had earlier clarified that the allowance committee on 7th Pay Commission has not yet submitted its report. The minister said the government will decide on the implementation after the report is submitted by the committee.

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Mr Mishra also said that the employee representatives recently held a meeting with another panel that is looking into NPS or National Pension Scheme. The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to the Ashok Lavasa committee. The 7th pay commission had examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances. The Union Cabinet had also constituted a separate committee for suggesting measures for streamlining the implementation of National Pension System (NPS).

As regards allowances, the unions have demanded HRA (house rent allowance) at the rate of 30 per cent, 20 per cent and 10 per cent. The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities.

The 7th Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

The National Joint Council of Action or NJCA is a joint body of unions representing central government employees.

Minister of State for Finance Arjun Ram Meghwal had earlier clarified that the allowance committee on 7th Pay Commission has not yet submitted its report. The minister said the government will decide on the implementation after the report is submitted by the committee.